Consultation on proposed approach to cost recovery in relation to Capacity Allocation and Congestion Management mechanisms for electricity interconnectors

Publication date
3rd March 2017
Closing date
31st March 2017
Policy area

The Commission Regulation (EU) 2015/1222 establishing a guideline on Capacity Allocation and Congestion Management (CACM) is a central component of the internal electricity market, as set out in the EU Third Energy Package. CACM, which came into force on 14 August 2015, aims to maximise the efficient use of interconnection and facilitate greater cross-border electricity trade, through market coupling in the day-ahead and intraday timeframes. Market coupling should make sure power is produced where it is most efficient and transported to areas of consumption where it is most valued. This should lower prices for consumers and support secure and sustainable supply.

This consultation sets out Ofgem’s national proposals as to how GB interconnectors involved in the NWE Price Coupling Project and Cross Border Intraday (XBID) Project, referred to as the “CACM Pilot Projects”, will recover their costs associated with these Pilot Projects and the enduring arrangements that are to apply retrospectively from 14 August 2015 and 14 February 2017, respectively. We invite comments on the proposals set out in this letter from all interested parties.